Risk controlling approach
One of the main duties of modern risk controlling at Deka Immobilien is developing and continuously improving methods for the risk types used. This forms the basis for ongoing risk monitoring, independent reporting including stress analyses and limit monitoring.
Because of the long-term investment horizons, the new product process (NPP) is critically important. Therefore, in addition to the NPP that is required by the regulations, Deka Immobilien has also implemented a product process (PP) to assess each individual asset, in which all of the functional units involved work together in an interdisciplinary manner. This ensures that every asset receives a comprehensive risk assessment that far exceeds regulatory requirements, even at the acquisition stage. In addition to the results from due diligence, the PP and NPP also include a wide variety of stress scenarios for calculating profitability and risk measurement results (two-stage Monte Carlo simulation), combined with qualitative factors. In our view, this is a key indicator of the high quality provided by Deka Immobilien, as it allows opportunities and risks to be taken into account and analysed optimally for each investor.
The strategic objectives of the funds are also regularly reviewed during the holding period based on the existing situation, knowledge gained in the past financial year and future performance forecasts. This ensures that investors can continue to achieve the best possible results.
At Deka Immobilien, effective risk controlling extends all the way to the reporting process. In addition to differentiated risk measurement, it also includes critically reviewing and managing regulatory (risk) models for our institutional investors, which include savings banks, private banks and Volksbanks (cooperative banks), and portfolio risk simulations during the portfolio selection process. These tailored services are customised to meet the specific needs of each of our clients. Our modern approach to risk management makes us an experienced and reliable partner in the real estate sector and gives institutional investors the freedom to take the actions they need for their core business.